KAT,

<<And the other is that if the earnings are negligible, it might be better to simply pull everything out of the IRA under the rule in technical corrections that lets you take money out (with any earnings) by the return due date and treat it as if it hadn't been contributed. Why do this? For one thing, you may be able to preserve the right to make a 1998 IRA contribution again later in the year (or early 1999) if cash becomes available after the closing on the house. For another, it preserves the $10,000 lifetime cap on amounts that can be taken out of an IRA for first-time homebuyers. Maybe you'll never need it, but you never know. It's a thought anyway, but I won't be sure it works until we see tech corrections. Note, though, if there are earnings, going this route will mean a 10% penalty on that part of the withdrawal.>>

Neat twist! I really like that. It leaves a number of options open.

Pixy